Quote:
Originally Posted by Swimmer
Makomike, its the large scale problem created by the home loan originators and the borrowers who both worked to create unverifiable nonexistent income, that created this mess. I don't see how reining in those originators and the companies they work for as the F.B.I. is starting to do will hurt. It is theft on a grand scale. It is going to shut down the economy all by itself without any help from anyone else. Just watch. This isn't much different from the house flipping scandals of a decade or more ago. That partailly collapsed the real estate market for about a year when that occurred. More greed and outright theft. The originator gets his, the real estate broker gets his, the attorneys get thiers, the originators company gets thiers, and the loan buyer gets left holding the bag. Not this time though. This time its us!
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You said "No one shold be allowed to sell off loans anymore." That would totally shut down the credit markets, which in turn would totally shut down the economy. It would affect both big and small businesses, big companies couldn't float bonds or commercial paper, small companies couldn't get loans from the SBA or their local banks becuse those insitutions could borrow funds. The housing market would dry up in a POOF, when Fannie Mae couldn't raise funds, kids would be thrown out of school when Sallie-mae couldn't get funds for student loans. IN short most economic sctivity would come to a grinding halt.